Questions to Ask When Investing in Your Independent Pharmacy’s Future
Here at PDS, we take pride in highlighting some of our incredible solutions partners. We know these companies have the potential to revolutionize pharmacies just like yours through their products and services. We’re excited to introduce Associated Pharmacies, Inc. (API), read on for their sponsored blog post about investing in your pharmacy’s future.
Your independent pharmacy is your livelihood and your calling. Whether you enjoy the autonomy, the ability to make a difference in people’s lives, or the contributions you can make to your community – or all of the above – you own your community pharmacy for a reason, and you work hard to see it succeed.
Investing in yourself and your business has never been more important than in today’s business environment – whether your store operates in a close-knit small town, a crowded city, or anything in between.
What does it take to build a strong, patient-centric pharmacy business that will keep people coming back?
It starts with you, your vision, and the important decisions you make. Every day you seek out the most beneficial choices in pricing and services as you make efforts to grow your pharmacy. Growth and change are necessary aspects of any successful venture, but this is particularly true for independent pharmacy owners.
As you look to the future, what’s next for your pharmacy? How will you face the rapid changes in the pharmaceutical marketplace and come out stronger?
Surrounding yourself with the tools you need to succeed is always a key part of moving forward, and some of your most valuable assets are your suppliers – plural. Rarely will any direct offer secure the best total cost of inventory. According to Jeff Hetrick of McDonald Pharmacy, “Frankly, you can’t maintain the proper cost of goods or buying situation on a wholesale or direct deal anymore.”
Direct contracts or a group contract – which is better?
Contracting directly with a supplier may seem like an efficient option, but is it really what’s best for your bottom line and the future viability of your pharmacy? When cable and telephone companies bundle services together, it can often be hard to discern the true value and costs. The same is true of an independent direct pharmaceutical supplier deal. In particular, in a world where pharmaceutical prices rapidly fluctuate, individual direct wholesaler termed deals or contracts can severely hamper a pharmacy’s ability to save money.
Pharmaceutical purchase agreements have become a very complex contracting process in which the buyer must be very careful of what they ask for AND must read and understand every aspect of the agreement. Today all primary purchase agreements require some type of purchasing requirements or compliance to be eligible for the desired discounts and rebates. Can you meet the requirements? What are the consequences if you don’t? Many owners wish to purchase from other sources than just the primary supplier, but how much CAN be purchased if the contracted compliance rate is 90% or 95%? How is that compliance rate calculated?
Most important with any purchase agreement is to not lose sight of the bottom line. Your focus needs to be on the DOLLAR cost to purchase your pharmaceutical inventory – not the compliance percentages, discount percentages or rebate percentages. Before you commit your business to a 2-3 year commitment, you should completely understand the effect the contract terms will have on your business.
The good news is, you have options, and independent pharmacies’ preferred generic Rx partner just got better. API’s warehouse program is designed to improve cash flow, starting with a 20% instant generic rebate off invoice pricing. Keep more money in your pocket from the beginning. This allows more flexibility to focus your time and efforts on your patients and increasing capital to invest in improving your pharmacy and its services.
Make sure you’re getting the best cost of goods. Empower yourself to look at your pharmacy’s future today.
About the Author:
Associated Pharmacies, Inc. (API), the warehouse subsidiary of American Associated Pharmacies (AAP), is designed to lower operating costs and increase margins on Brand Rx, Generic Rx, and OTC’s. API is member-owned, which means the profits make their way back to you as the customer. After a 20% INSTANT generic rebate, you receive the remainder of monthly accrued generic Rx rebates that can total up to 49%. You can also earn Generic Achievement Credits for every $7,000 in monthly generic Rx purchases. Additionally, earn Generic Loyalty Rebates on qualifying annual purchases at the end of the year. Need brands? Brand discounts are available at up to cost minus 6.75%.
At API, you purchase how YOU want to buy. API will ship any order in any quantity; reasonable minimum orders only apply to whether shipping fees are waived. With over 2,000 SKUs at the best net prices, API has everything you need to take care of your patients. Invest in your future, your customers, and your pharmacy. Make API your pharmacy’s NEXT improvement.
